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Revenue-share has nervous players seeking an exit option

Australian cricketers are asking for the right to be released from their contracts should their pay drop below a nominated amount.

The current pay dispute with Cricket Australia is a long way from matching the ugly stoush of 2017 Picture: Getty Images
The current pay dispute with Cricket Australia is a long way from matching the ugly stoush of 2017 Picture: Getty Images

Australian cricketers are asking for the right to be released from their contracts should their pay drop below a nominated amount in the next 12 months.

The Australian Cricketers Association and Cricket Australia are circling each other in talks over how to handle the administration’s claims of a cash crisis and projections of further impact over the summer.

The players are paid a percentage of cricket revenue and have, since the alarms were first sounded at CA, said they believe that this is the best way to handle any loss of revenue should future tours be cancelled, crowds be banned or other impacts of the pandemic affect the summer.

Cricket Australia named the 35 men and women offered central contracts at the end of April. The states and BBL teams are now drawing up their playing lists which will be in place for the next financial year.

Under the current model, if revenue drops or rises, the players’ pay drops or rises accordingly under the current model. CA however want to front load the pain.

In discussions with The Australian on Wednesday, CA likened their proposal to rent relief in that they would ask the players to accept less up front with the balance to be paid down the track should the worst not occur. The players are already owed around $80m which is sitting in a fund known as the adjustment ledger. That money accrued when the broadcast deal and other revenues post the signing of the MOU in 2017 exceeded expectation.

The ACA and CA do not see eye-to-eye on the current financial position of the game, the players body, like some states, arguing the position is not that bad that it warrants 25 per cent cuts.

The players have suggested a percentage-based retainer this year which would allow their contracted pay to be cut by set amounts if and when future losses are incurred.

CA wants to front load the pain, but the players believe the losses can be drawn down from the reserves in the adjustment ledger.

The most controversial part of the ACA’s stance was revealed to The Australian on Wednesday after the players body contacted members and explained it wanted a clause in the 2020-21 contracts which allows the players to nominate what was described as a “release amount” where they can walk away from the contract should the retainer drop below that amount.

The player would nominate that amount. The clause would affect all international and state players and could create enormous headaches for the administration.

It triggers memories of the original MOU dispute which saw all Australian players without contracts when they failed to reach an agreement with CA, but the situation is a long way from becoming that ugly.

The Australian revealed last week that the administration was looking to cut two Sheffield Shield rounds and a number of WBBL matches. There are now also plans to cut one Marsh Cup round from the schedule.

The MOU states that the players must agree to those changes and at the moment the ACA is reluctant to commit.

Cricket Australia faces a similar situation in its dealings with Cricket NSW and Queensland Cricket who are refusing to accept a 25 per cent reduction in the grants owed to them for the next financial year.

The states do not have to agree if they are not convinced the financial situation is as bleak as proposed. CA chief executive Kevin Roberts is playing a long game and said there was still time to reach agreements with states and players but admitted he would like things to move more quickly.

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Original URL: https://www.theaustralian.com.au/sport/cricket/revenueshare-has-nervous-players-seeking-an-exit-option/news-story/69880182980103f714d7b286dc418429